Pence solidifies opposition to Indiana-run health exchange

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INDIANAPOLIS — Gov.-elect Mike Pence is formalizing his opposition to a state-run health insurance exchange in a letter to Gov. Mitch Daniels.

Pence wrote Thursday that the state could not afford to build its own exchange for residents to purchase health insurance. He also says he opposes a "hybrid" partnership with the federal government for now, but would consider changing his mind before a February deadline.

Daniels told the gubernatorial candidates earlier this year that he would pass on their decision to the federal government ahead of Friday's deadline because one of them would ultimately be tasked with the implementation of the federal health care law.

If Pence declines the hybrid option in a few months, the federal government would build an exchange for Indiana and run it for a year.